medium · Order Flow Analysis tape-reading-time-sales

A sudden sweep occurs where 1,000 contracts trade at the offer at a session high, but price does not advance.

What does this 'cap' signature most likely indicate?

  1. Institutional passive sellers are absorbing all aggressive buying interest
  2. High-frequency traders are spoofing the offer to induce retail selling
  3. An initiative breakout is imminent due to the surge in aggressive buying
  4. The market is entering a state of low-volatility equilibrium

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